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# Problem One DATA:

Beginning Inventory 1st Purchase 2nd Purchase 3rd Purchase UNITS AVAILABLE Ending Inventory Units Sold

= = = =

## 125 @ 275 @ 500 @ 900 225 675

1. Specific Identification SOLD-> 100 from 1st purchase, SOLD-> 200 from 2nd. SOLD 375 from the 3rd purchase A. What is the value of Cost of Goods Sold Under Specific Identification:

## 1st Purchase 2nd Purchase 3rd Purchase Ending Inventory 2. FIFO

25 @ 75 @ 125 @ 225

## 1,500 5,250 12,500 19,250

A. What is the value of Cost of Goods Sold Under FIFO: 1st Purchase 2nd Purchase 3rd Purchase 100 25 175 100 275 @ @ @ @ @ \$60 \$60 \$70 \$70 \$100 = = = = = 6,000 1,500 12,250 7,000 27,500

Cost of Goods Sold B. What is the value of Ending Inventory under FIFO: 1st Purchase 2nd Purchase 3rd Purchase Ending Inventory 3. LIFO A. What is the value of Cost of Goods Sold Under LIFO: 1st Purchase 2nd Purchase 3rd Purchase Cost of Goods Sold 100 @ 200 @ 200@ 375 175@ 675 \$100 = \$100 = \$100 = \$70 = 225 @ \$100 =

54,250

22,500 \$22,500

## 10,000 20,000 20,000 12,250 62,250

B. What is the value of Ending Inventory under LIFO: 1st Purchase 2nd Purchase 3rd Purchase Ending Inventory 225 14,500 125 @ 100 @ \$60 = \$70 = 7,500 7,000

4. Weighted Average A. What is the value of Cost of Goods Sold Under Weighted Average: 675 @ 85.28 = \$57,564

B. What is the value of Ending Inventory under Weighted Average: 225 Problem TWO DATA: @ 85.28 = \$19,188

0 20

@ @

\$0 \$7

= =

\$0 \$140

rd

30 40 90 50 40

@ @

\$8 \$11

= =

## \$240 \$440 820

5. Specific Identification SOLD-> 20 from 1st purchase, SOLD-> 10 from 2nd. SOLD 10 from the 3rd purchase A. What is the value of Cost of Goods Sold Under Specific Identification:

## 1st Purchase 2nd Purchase 3rd Purchase Units Sold

20 x 10 x 10 x 40

\$7 = \$8 = \$11 =

## B. What is the value of Ending Inventory under Specific Identification:

1st Purchase 2nd Purchase 3rd Purchase Ending Inventory 6. FIFO A. What is the value of Cost of Goods Sold Under FIFO: 1st Purchase 2nd Purchase 3rd Purchase Cost of Goods 20 x 10 x 10 x 40 \$7 = \$8 = \$8 = \$140 \$80 \$80 \$300 20 x 30 x 50 \$8 = \$11 = \$160 \$330 \$490

B. What is the value of Ending Inventory under FIFO: 1st Purchase 2nd Purchase 3rd Purchase 10 x 40 x \$8 = \$11 = \$80 \$440

## Ending Inventory 7. LIFO

50

\$520

A. What is the value of Cost of Goods Sold Under LIFO: 1st Purchase 2nd Purchase 3rd Purchase Cost of Goods 20 x 10 x 10 x 40 \$11 = \$11 = \$11 = \$220 \$110 \$110 \$440

B. What is the value of Ending Inventory under LIFO: 1st Purchase 2nd Purchase 3rd Purchase Ending Inventory 50 \$380 20 x 30 x \$7 = \$8 = \$140 \$240

8. Weighted Average A. What is the value of Cost of Goods Sold Under Weighted Average: 40 @ \$9.12 = \$364.80

B. What is the value of Ending Inventory under Weighted Average: 50 @ \$9.12 = \$456.00

9 Lower of Cost or Market: June 2, 2010 purchased 500 widgets for \$10 each. December 31, 2010 the widgets cost \$7.00 each Insert the correct amounts in the entry below assume all 500 are sold: DEBIT COST OF SALES (cost \$5,000-market \$3,500) INVENTORY To write inventory down to market value 10 Estimate Ending inventory Beginning inventory is \$10,000 Purchases total \$5,000 Sales are \$20,000 assume a 40% gross profit What is ending inventory: 1,500 1,500 CREDIT

plus

minus

ending inventory

19,187.50